123. For the purpose of determining the solvency of a pension plan, the assets of the plan must be established according to their liquidation value or an estimate of that value and be reduced by the estimated amount of the administration costs to be paid out of the pension fund assuming that the pension plan is terminated on the valuation date.
The liabilities of the pension plan must be equal to the sum of the following values:
(1) the value of the obligations arising from the plan, assuming that the plan is terminated on that date; and
(2) the value of the obligations arising from any amendment to the plan considered for the first time at the date of the valuation, such value having been computed on the assumption that the effective date of the amendment is the valuation date.
A letter of credit provided by the employer under section 42.1 forms part of the assets of the plan for the purpose of determining its solvency. However, the amount of the letter, or the total amount of such letters, is taken into account for that purpose only up to 15% of the value of the liabilities of the plan.
1989, c. 38, s. 123; 2006, c. 42, s. 11; 2008, c. 21, s. 33.